A case study in how the options market reacts to breaking news
We've written a lot lately about how traders buying and selling options seem to be driving Apple's (AAPL) share price (see here, here and here.) So we thought it might be instructive to look at what happened on a day when Apple's share price took over and drove the options market -- specifically, the so-called Max Pain price point MOREPhilip Elmer-DeWitt - May 23, 2011 9:00 AM ET
New evidence suggests that since last summer the tail has been wagging the dog
If you're any kind of Apple (AAPL) investor, you should be aware of the chart at right, even if you don't know a put from a call and don't really care to.
It shows the value in millions of dollars as of Wednesday morning of the outstanding Apple options that expire this Friday, with the magenta bars representing MOREPhilip Elmer-DeWitt - May 18, 2011 7:36 AM ET
The stock is up 330% since its 2008 low, but that's really nothing to write home about
In an article posted Friday on Seeking Alpha, Fortune.com contributor Andy Zaky takes aim at a phrase that has attached itself to Apple (AAPL) recently: "the darling of Wall Street." (Google it; you'll be surprised how often it pops up in the financial press.)
Apple is a darling, the thinking goes, because the stock has MOREPhilip Elmer-DeWitt - May 13, 2011 7:40 AM ET
There's something very fishy about the weekly options market. Is it time to reel in the bad guys?
It was 3:48 p.m. on Friday April 29 and traders who had purchased Apple (AAPL) April 29 $350 "calls" -- options that gave them the right to buy Apple shares in blocks of 100 for $350 per share -- were sitting pretty. The stock was trading around $353.50 and those calls were worth MOREPhilip Elmer-DeWitt - May 12, 2011 1:00 PM ET
Trading in the company's shares Monday was slower than it's been since New Year's Eve, 2010
Apple (AAPL) has been trading in a narrow band this year -- to the undying frustration of investors who think the stock's price ought to reflect the company's breakneck earnings growth (EPS up 75%, 68%, 75% and 92%, respectively, over the past four quarters).
Apple's trading volume, by contrast, is as changeable as a baby's bottom, MOREPhilip Elmer-DeWitt - May 10, 2011 8:09 AM ET
Moves up from 59th place in 2010 based on boffo sales growth and return on investment
In what Barron's describes as "a tip of the hat" to the corporations that generated the most revenue growth and cash returns in recent years, the magazine moved Apple (AAPL) up 55 spots in its 13th annual ranking of America's 500 largest companies that aren't currently in bankruptcy.
"While such operating success might not generate immediate MOREPhilip Elmer-DeWitt - May 7, 2011 12:31 PM ET
Up 21 slots from 2009. If ranked by profits, rather than revenues, it would be No. 8
Apple (AAPL) catapulted into the top 50 U.S. companies in the 2011 edition of the Fortune 500 released Friday. The rankings are based on revenues from the most recent fiscal year -- in Apple's case, the one that ended Sept. 2010. If profits had been the criterion, Apple would have come in eighth, right MOREPhilip Elmer-DeWitt - May 6, 2011 6:21 PM ET
Someone sold 6 million shares at $348.24 as Apple put the NASDAQ-100 rebalance behind it
Apple investors had been dreading Friday's close since early April, when NASDAQ announced that starting May 2, Apple's share of the NASDAQ-100, one of the world's most heavily traded stock indexes, would be reduced from 20.5% to 12.3%.
All 100 stocks in the index were to be affected by the so-called Special Rebalance, but none as much MOREPhilip Elmer-DeWitt - May 1, 2011 7:39 AM ET
For the first time in decades, Apple's net income has overtaken Microsoft's
One by one, the bragging rights are going Steve Jobs' way.
In May 2010, Apple's (AAPL) market cap passed Microsoft's (MSFT).
In October, Apple overtook Microsoft in total revenue.
On Thursday, when Microsoft reported its earnings for the March quarter, Steve Ballmer lost what edge he still had. Microsoft's net income for calendar Q1 2011 was $5.23 billion. Apple's was $5.99 billion.
Also MOREPhilip Elmer-DeWitt - Apr 28, 2011 6:27 PM ET
In 2007, it was trading for nearly 50 times earnings. Today it's 16.7. What happened?
I hate to quote Horace Dediu twice in one day, but sometimes it can't be helped.
Wednesday's post on his Asymco blog features the chart at right, which plots Apple's (AAPL) share price (blue line) over the past four and a half years set against multiples of earnings (15 x EPS, 25 x EPS, etc.). The chart MOREPhilip Elmer-DeWitt - Apr 27, 2011 7:03 PM ET
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